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Federal Reserve Chairman Jerome Powell Under Investigation: Why?
The U.S. Attorney’s Office for the District of Columbia has opened a criminal investigation into Federal Reserve Chairman Jerome Powell regarding the central bank’s renovation of its Washington headquarters and whether Powell lied to Congress about the scope of the project, The New York Times reported Sunday, January 11.
The investigation, which includes an analysis of Powell’s public statements and an examination of spending records, was approved in November by Attorney Jeanine Pirro, The New York Times reported, citing officials familiar with the matter.
The Trump administration has issued subpoenas to the Federal Reserve concerning the $2.5 billion renovation of its Washington headquarters.
Powell stated Sunday evening that the U.S. central bank received a grand jury subpoena on Friday, along with the threat of criminal charges from the Justice Department, according to the Financial Times.
“On Friday, the U.S. Department of Justice served the Federal Reserve with grand jury subpoenas, threatening me with criminal charges related to my testimony before the Senate Banking Committee last June,” Powell said in a video statement posted on the Federal Reserve’s official Twitter account.
“That testimony concerned, in part, a multi-year project to renovate historic Federal Reserve office buildings.”
Powell added, “I have deep respect for the rule of law and accountability in our democracy. No one, certainly not the chairman of the Federal Reserve, is above the law, but this unprecedented action should be viewed in the broader context of the administration’s ongoing threats and pressure.”
These legal actions relate to testimony Powell gave before the Senate Banking Committee last June regarding the renovation project.
The administration has used this project, which has significantly exceeded its budget, as a tool to attack the U.S. central bank and Powell, whom President Donald Trump has called a “moron” for refusing to cut interest rates to 1%.
